"The risk-reward doesn't seem compelling. If equities pull back enough (say over 10pc in the S&P 500), there is likely to come a time to buy. But not yet. The possibility of prolonged turmoil in the Middle East and the ripple effects of higher oil prices are giving money managers fresh reasons to sell equities and shift into safety."
"This is all coming at a fragile time as investors are becoming more cautious. US equity markets are already very sensitive to threats of technology disruption and emerging credit stress, so the prospects of higher commodity prices could force a selloff as investors reduce risk exposure."
"Stocks tumbled and oil prices jumped as the eruption of war between the US and Iran rattled global markets. The Stoxx 600 index of European shares is down 1.6pc after hitting an all time high last week. Gold and the dollar rose as investors piled into havens."
Global markets experienced significant turmoil following escalating US-Iran tensions. European shares fell 1.6%, with banking and airline stocks particularly affected. Bank of Ireland dropped over 4%, Ryanair fell 3.5%, and IAG declined 13%. Oil prices surged as the Strait of Hormuz shipping lane effectively closed, with Brent crude near $80 per barrel. European wholesale gas prices jumped 25%. Investors shifted to safe-haven assets, driving gold and dollar prices higher. Analysts warn this conflict may produce prolonged market disruption unlike recent short-lived turmoil. Barclays strategists recommend caution against buying dips, citing risks from US casualties, Iranian leadership strikes, and Hormuz disruption. High equity valuations and credit stress amplify selling pressure.
Read at Irish Independent
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